Are “fixer” homes overpriced in Portland Oregon?
Looking for a “fixer” home so you can take advantage of low prices and create your dream home for less than a comparably priced home in your preferred area? If you watch many of the housing shows on TV, you see this happen all the time.
According to a recent study by Realtor.com, there is a huge disparity between the possible discounts available to home buyers looking to purchase “fixers” versus move in ready homes throughout the U.S.
For example, in Clarksville, Tennessee a typical fixer can be purchased for about a 70% discount. Likewise most cities around the country offer some great deals. But those of us who reside in the Portland metro area are seeing only about a 6% discount on fixer properties. That’s hardly enough financial break to afford the necessary repairs and still come out even close to even on comparably priced homes in the area. According to Realtor.com, the median price of a fixer home in Portland is currently 354,928, just 6% lower than the $379,000 median price of homes in good condition.
What’s going on in Portland? It’s really a matter of supply and demand. There is very little supply of “fixer” homes in Portland right now, so the laws of supply and demand rule. It doesn’t help that there is also an ample supply of cash buyers competing with the everyday buyer either. These developers usually have “fixer teams” make short work of the needed renovations, which of course, they also do at a discount to what you and I would pay for the same work.
Portland isn’t the only city running out of fixers. As-is homes are becoming increasingly harder to find throughout the country. Check out the chart above to see many metro areas and what investors are paying for these fixers these days. Thank goodness we don’t live in Prescott, Arizona!
Beware Portland buyers – there are few “fixers” out there that are really a good deal right now, unless the repairs required are strictly cosmetic and can be done over time. The homes marketed as “fixers” that sound like a great value need a whole lot of fixin’ and will either require a cash purchase or a rehab loan.